Singapore has announced it is making a push to promote the adoption of electric vehicles (EV) beginning from next year, as it makes the move towards phasing out the sale of internal combustion engine (ICE) vehicles by 2040.
New measures to make EVs a more attractive proposition were announced by the country’s deputy prime minister Heng Swee Keat in his Budget speech earlier today. This includes expanding the EV charging infrastructure in the republic from 1,600 points presently to 28,000 island-wise by 2030. It will also include an early-adoption incentive scheme for EVs, which will be in place from 2021 to 2023.
“We are placing a significant bet on EVs, and leaning policy in that direction because it is the most promising technology. Our vision is to phase out ICE vehicles and have all vehicles run on cleaner energy by 2040,” he said.
The country already has a Vehicular Emissions Scheme (VES) in place. Introduced in 2018 and valid till December 31 this year, this provides an upfront rebate of up to S$20,000 (RM59,700) for the cleanest, low-emission vehicles.
Electric vehicles are also set to benefit from an EV early adoption incentive scheme, which will see a rebate of 45% off the vehicle’s additional registration fee (ARF), capped at S$20,000 (RM59,700). This will be in place from January 1, 2021 to December 31, 2023.
According to the country’s Land Transport Authority (LTA), the new scheme – which is expected to cost the government an estimated S$71 million (RM212 million) over the next three years – will lower the upfront cost of an electric car by an average of 11%, and also narrow the upfront cost gap between electric and ICE cars.
A Commercial Vehicle Emissions Scheme for light goods vehicles, similar to VES – which is applicable for cars and taxis – will also be introduced, with details of that plan expected to be announced in the next few weeks.
The government is also set to revise the method of calculating road tax for EVs. which is tiered by power rating, from January 2021. According to the LTA, this will lead to an across-the-board reduction in this variable component of road tax for EVs and some hybrids.
However, a lump-sum tax will be imposed For EVs to offset the loss of fuel excise duties, which yields the government a significant revenue of around S$1 billion (RM2.99 billion) a year. This additional tax on EVs will be phased in over three years, beginning next January at a rate of S$200 (RM597), then S$400 (RM1,193) in 2022 and S$700 (RM2,088) from 2023 onwards.
“Ideally, we would like to implement a usage-based tax on EVs as an alternative to fuel excise duties. But the technology to do this properly on EVs is the next generation ERP (electronic road pricing) system, and distance-based charging using ERP is still several years away,” Heng said.
“Total road tax, after the revision in methodology and the new lump-sum tax, will be higher for some EV models. However, EV buyers can expect to enjoy substantial cost savings because of the significant EV early adoption incentive,” he explained. The LTA says that under the revised road tax framework, mass market EVs will incur an annual usage cost which will still be about 9% lower than their ICE equivalents.
Malaysia is set to unveil its National Automotive Policy (NAP) 2020 this Friday, February 21. Will we see a similar line of thought towards electrification in our revised policy?
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EV fulltank under 3min, Nissan Leaf EV terbest.
Fulltank under 3min is a lie. Have fun with your Leaf when Nissan is finally bankrupt.
In S’pore this is viable as the small island would meant there is less range anxiety for EVs. However, despite someone saying S’pore cars are cheap to own S’pore Govt had to give rebates to push for EV cars even with the obvious benefits. I wonder if cars in S’pore are really cheap as he said or otherwise expensive for average S’poreans.
But almost all S’poreans can’t charge when they park at their home.
Pull a long cable down from HDB home??
Malaysia romoved eV and eev incentive.. Good!
meanwhile, malaysia does not promote EV because 1 man and his dream.
China doesn’t promote EV any more too. Registrations of EVs fell >35% because nobody want to buy the EV crap without subsidies.
…meanwhile in Malaysia, automotive-industry players and think-tank are still playing with their thumbs, indulge in long teh-tarik session, dilly-dally, attending mindless meetings, politicking, shoe-polishing, delivering “feel-good” speeches, chest-thumping, self-praising, eating salary-blindly, etc.
End of the year comes, pat yourself at the back and syoik sendiri.
Repeat process next year.
In SG, they have Chow Yun Fatt announcing: Welcome to Singapore!
In MY, we got an old atok announcing: Welcome to New Mesia, where we go back the same Old Mamak Mesia!
good.less s car in malaysia….because with have very few charging station..lol
Malaysia promoting fly car… still top-secret… motor power by battery or petrol.
and here we are talking about the same old NAP…
mana tak MAI lagi?
Range anxiety is a thing of the past with current battery tech that’s available. Msia gomen should’ve started this initiative ages ago! Still in deep slumber ka?
“Ideally, we would like to implement a usage-based tax on EVs as an alternative to fuel excise duties. But the technology to do this properly on EVs is the next generation ERP (electronic road pricing) system, and distance-based charging using ERP is still several years away,”
EV will be charged more for ERP . With $1 billion revenue from fuel tax, for sure gov will find a way to make up for revenue loss.